TE Connectivity Ltd. (NYSE:TEL) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analyst sentiment is moderately positive: Sixteen firms rate TE Connectivity a consensus “Moderate Buy,” with eight buys, two strong buys, five holds, and one sell. The average 12-month price target is $251.36.
• Quarterly results exceeded expectations: TE Connectivity reported adjusted earnings of $2.94 per share versus the $2.85 consensus, while revenue rose 13.8% year over year to $5.16 billion.
• The company continues returning capital to shareholders: TE Connectivity declared a quarterly dividend of $0.78 per share, or $3.12 annualized, representing a 1.4% yield and a 30.59% payout ratio.

Shares of TE Connectivity Ltd. (NYSE:TEL - Get Free Report) have been given an average rating of "Moderate Buy" by the sixteen ratings firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, eight have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $251.36.

A number of equities analysts recently weighed in on TEL shares. Evercore restated an "in-line" rating and issued a $230.00 price objective on shares of TE Connectivity in a report on Monday, June 22nd. Wall Street Zen upgraded TE Connectivity from a "hold" rating to a "buy" rating in a research note on Sunday, September 20th. Sanford C. Bernstein started coverage on TE Connectivity in a report on Wednesday. They issued an "outperform" rating and a $243.00 target price for the company. Wells Fargo & Company boosted their price target on TE Connectivity from $209.00 to $220.00 and gave the stock a "cautious" rating in a research note on Friday, September 11th. Finally, UBS Group reaffirmed a "buy" rating and set a $241.00 price objective on shares of TE Connectivity in a research report on Thursday, July 23rd.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in TEL. JNBA Financial Advisors lifted its holdings in TE Connectivity by 67.1% in the 2nd quarter. JNBA Financial Advisors now owns 127 shares of the electronics maker's stock worth $26,000 after purchasing an additional 51 shares in the last quarter. Pin Oak Investment Advisors Inc. purchased a new stake in TE Connectivity during the 2nd quarter valued at approximately $34,000. Commonwealth Retirement Investments LLC bought a new stake in shares of TE Connectivity during the fourth quarter valued at approximately $40,000. MV Capital Management Inc. bought a new stake in shares of TE Connectivity during the fourth quarter valued at approximately $41,000. Finally, Bayban purchased a new position in shares of TE Connectivity in the fourth quarter worth $44,000. 91.43% of the stock is owned by hedge funds and other institutional investors.

TE Connectivity Price Performance

Shares of NYSE TEL opened at $219.02 on Friday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.23 and a current ratio of 1.88. The company has a 50 day simple moving average of $208.18 and a two-hundred day simple moving average of $208.93. TE Connectivity has a fifty-two week low of $190.27 and a fifty-two week high of $252.56. The company has a market capitalization of $63.41 billion, a price-to-earnings ratio of 21.47, a P/E/G ratio of 1.43 and a beta of 1.16.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The electronics maker reported $2.94 earnings per share for the quarter, beating analysts' consensus estimates of $2.85 by $0.09. TE Connectivity had a return on equity of 24.59% and a net margin of 15.61%.The company had revenue of $5.16 billion during the quarter, compared to analyst estimates of $5.01 billion. During the same quarter last year, the company earned $2.27 EPS. The firm's revenue for the quarter was up 13.8% on a year-over-year basis. TE Connectivity has set its Q4 2026 guidance at 3.050-3.050 EPS. Analysts expect that TE Connectivity will post 11.48 EPS for the current fiscal year.

TE Connectivity Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 20th will be issued a dividend of $0.78 per share. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, November 20th. TE Connectivity's dividend payout ratio (DPR) is presently 30.59%.

TE Connectivity Company Profile

TE Connectivity Ltd. NYSE: TEL designs and manufactures connectivity and sensor products used in transportation, industrial equipment, communications systems, data centers, aerospace and defense, medical technology, energy infrastructure, and consumer applications. Its products help transmit power, data and signals between components and systems.

The company's product portfolio includes connectors, terminals, relays, sensors, antennas, cable assemblies, circuit-protection devices, heat-shrink products and other components for electronic and electrical systems.

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